Year of publication: 2015
Category: Special Topic Reports
Upload date: 2015-07-27
You can download the report as PDF at the bottom of the page.
The long-term effects of the U.S financial crisis and ensuing global downturn continue to be felt worldwide. In particular, it is the new entrants into the labour market – the youth – who are bearing the brunt of the sluggish global economy. Fostering effective entrepreneurial activity among the youth is regarded as a critical development strategy in order to integrate them into the labour market as well as harness their potential to contribute in a meaningful way to sustainable economic development in their regions. This report analyses data collected over the period 2012 – 2014 by GEM National Teams through the standard annual surveys in order to contribute to a deeper understanding of the nature, characteristics and dynamics of youth entrepreneurs and enterprise formation, from a global perspective.The areas focused on are a comparison between youth and adults, gender differences in youth entrepreneurial behaviour, and a regional comparison of youth entrepreneurship. To enable the use of GEM data, the youth is defined as people between the ages of 18 – 34 years. Where appropriate, the report distinguishes between the ‘young youth’ (18 – 24 years) and the ‘older youth’ (25 – 34 years).
Looking ahead, it’s estimated that almost 50% of the current jobs in existence will become automated, even in the ‘white-collar’ occupations, which have traditionally been resistant to automation. Over the coming 10 years, we will face huge, tectonic forces of globalisation and astonishing technological progress – forces that must be confronted and embraced if we are to ensure economic opportunity and inclusiveness for all.
Andrew McAfee, Co-Director of the Initiative on the Digital Economy at the MIT Sloan School of Management (quoted in WEF Outlook on the Global Agenda 2015)
Some of the findings of the report
- Overall the older youth display the highest level of entrepreneurial propensity. It is encouraging that almost 40% of the young youth have personal contact with a start-up entrepreneur.
- Although there is also no significant difference in the exposure to business training at school, young men are 1.2 times more likely to pursue business training after school.
- South and East Asia have the highest percentage of youth business offering one to four jobs. The MENA region has the largest youth businesses – a fifth of businesses offer employment for at least five people.